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THE GOVERNMENT

THE GOVERNMENT

DECREE No. 175/1999/ND-CP OF DECEMBER 15, 1999 ON THE READJUSTMENT OF THE MINIMUM WAGE LEVEL AND THE LEVELS OF SUBSIDY AND COST-OF-LIVING ALLOWANCE APPLICABLE TO WAGE-EARNERS, AND SUBJECTS ENTITLED TO ALLOWANCES, SUBSIDIES AND COST-OF-LIVING ALLOWANCE FROM THE STATE BUDGET�S FUNDING SOURCE

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30, 1992;

At the proposal of the Minister-Head of the Government Commission for Organization and Personnel,

DECREE:

Article 1.- As from January 1st, 2000, to readjust the minimum wage level, and the levels of subsidy and cost-of-living allowance applicable to subjects entitled to wage, allowance, subsidy and cost-of-living allowance from the State budget�s funding source as follows:

1. To raise the minimum wage level from 144,000 VND/month as stipulated in the Government�s Decree No. 06/CP of January 21, 1997 to 180,000 VND/month for subjects enjoying wage or salary and allowance(s) paid from the State budget�s funding source;

2. To increase by 25% the monthly cost-of-living allowance for commune, ward or district township officials who either are in active service or have retired, over the allowance levels prescribed in the Government�s Decree No. 09/1998/ND-CP of January 23, 1998;

3. To increase by 25 % the level of pension and subsidy currently stipulated in the Government�s Decree No. 06/CP of January 21, 1997 for pensioners and subjects enjoying monthly subsidies under the social insurance regime;

4. To increase by 15% the subsidy fund stipulated in the Government�s Decree No. 28/CP of April 29, 1995 and Decree No. 06/CP of January 21, 1997 for subjects enjoying the monthly subsidies under the provisions of the "Ordinance on the preferential treatment of revolutionary activists, fallen heroes and their families, war invalids, diseased soldiers, resistance war activists and people with meritorious services to the revolution" passed by the National Assembly Standing Committee on August 29, 1994 (except for those who have been paid subsidy in lump-sum).

Article 2.-

1. The Government Commission for Organization and Personnel shall assume the prime responsibility and coordinate with the Ministry of Finance, the Ministry of Labor, War Invalids and Social Affairs and the Central Organization Commission in:

a) Guiding the readjustment of minimum wage level and allowance levels prescribed in Clauses 1 and 2, Article 1 of this Decree;

b) Guiding the ministries, branches and localities in setting up and ratifying the increased wage and allowance funds, ensuring that they shall not exceed the planned amount stated in the approved 2000 State budget and shall not cause sudden changes in prices;

2. The Ministry of Labor, War Invalids and Social Affair shall assume the prime responsibility and coordinate with the Government Commission for Organization and Personnel, the Ministry of Finance and the Central Organization Commission in:

a) Guiding the increase of pension and subsidy levels for subjects enjoying the monthly allowance under the social insurance regime as prescribed in Clause 3, Article 1 this Decree;

b) Based on the total increased subsidy fund stipulated in Clause 4, Article 1 of this Decree, providing detailed guidance on the increased subsidy levels for each subject being persons with meritorious services to the revolution on the principle that the highest increased subsidy level shall not exceed 25% of the current level;

c) Guiding the localities in setting up and ratifying the increased pension fund and subsidy fund, ensuring that they shall not exceed the planned amount stated in the approved 2000 State budget;

3. The Ministry of Finance shall incorporate the increased wage, allowance and subsidy funds stipulated in this Decree in the State budget at all levels as currently assigned. The financial bodies at all levels shall allocate fund for increased wage, allowance and subsidy only after getting the approval of the ministries and branches stated in Clauses 1 and 2 of this Article;

4. The Ministry of Finance shall coordinate with the Government Commission for Organization and Personnel in guiding units with revenue sources in working out the financial mechanism clearly defining the revenue sources and the use of revenue sources; in working out policies to encourage units with high revenue sources to set aside part of their revenue to cover the wage fund by themselves.

Article 3.- The Ministry of Defense and the Ministry of Public Security shall, after consulting the Government Commission for Organization and Personnel, the Ministry of Finance and the Ministry of Labor, War Invalids and Social Affairs, guide the implementation of this Decree�s provisions for the armed forces units under their respective management.

Article 4.- The ministers, the heads of the ministerial-level agencies, the heads of agencies attached to the Government, the presidents of the People�s Committees of the provinces and centrally-run cities shall have to map out and synthesize their respective increased wage fund, allowance fund, subsidy fund and cost-of-living fund, and send 4 (four) copies to the chairing agencies stipulated in Clauses 1 and 2, Article 2 of this Decree for approval. The ministries, branches and localities shall pay wage, allowance, subsidy and cost-of-living allowance at the prescribed levels only after obtaining the approval from those ministries and branches, and shall be repaid at the level stipulated in this Decree as from January 1st, 2000.

Article 5.- This Decree takes effect from January 1st, 2000.

Other deductions and wage-related regime or cost-of-living allowance for subjects enjoying wage or cost-of-living allowance from the State budget�s funding source shall be recalculated correspondingly to the readjustment of the minimum wage level and cost-of-living allowance levels as prescribed in this Decree.

Article 4.- The ministers, the heads of ministerial-level agencies, the heads of agencies attached to the Government, the presidents of the People�s Committees of the provinces and centrally-run cities shall have to implement this Decree.

On behalf of the Government

For the Prime Minister

Deputy Prime Minister
NGUYEN TAN DUNG